Gold had a technical failure of minor proportion, the (C - 2) low failed to hold.The
Inverted head and shoulders pattern with price target of 677$ that I mentioned is still in play - I believe, coincidently today low was the pattern neckline.

u can see the charts here

http://globalgold.blogspot.com

Going back to "stockman" and away from gold for a second, if I now wanted to initiate more exposure in those sectors (GICS 30&35), would i.e. WFMI (a place I personally love shopping at) or SBUX (even grind their beans at home) be smart choices now before the historical shift of money into these sectors takes place, or, given your outlook of the market over the next few months, do you see equity prices even in these sectors come down further?

Gold held above the 636 spot level and recovered above 640 level. That is good news.

$USD still holding in front of the batch of economic reports due out this morning. Oil up after getting overly done yesterday as well.

Mixed bag today? Prices paid up? Retail sales up but mostly due to autos and yes, GAS?

Bernake really is stuck here. He is betting that inflation will not take off. Is housing worse than reported? Yes it is. Will that abate inflation (reduced consumer expenditures)? Only maybe.

For anyone concerned about the market behavior of a particular stock in past cycles- the most recent two fed cycles ending 2/1/95 and 5/15/00 are recent enough that data is easily available on the internet. These two periods are unique resulting in a gain in the SPX in the former of 35% and a decline in the latter period of over 12% (for an average return of 11.5%). In my own case I want to be holding stocks now that outperormed the SPX on avg in these two windows AND posted positive returns in both.

You could take it a step further and limit your buy candidates to weekly RSI (9) <30 which have broken above short term downtrends and break above the opening range on the day you are making your purchase. I would guess there are many professionals today going through the exercise we are discussing here. They are looking for laggards in these sectors that will help hedge their (still) overweight energy exposure- just in case. Once these stocks begin to rise the larger players can quickly move even a large cap from weekly RSI of 30 to 70 (see PG), so one needs to be alert if using these technical indicators for entry.

There are plenty of consumer stocks in this zone right now which qualify. Don't overlook less obvious plays in restaurants, retail, and gaming. As discussed here in the past if we have a panic sell off 1987 style- all these stocks will get cheaper. On the other hand those 1987 style sell offs do not occur in every cycle.

JMHO and certainly not advice!

Another consumer staple looking oversold here, and in the accumulation zone by means of the daily/weekly/monthly RSI is Loblaws (TSE-L).

Stock is at levels not seen since 2001, yields 1.8%, and is trading at the low end of its 5 year P/E range.

L has been taking it on the chin of late due to cost overruns in reworking its supply chain to boost competitiveness, to compete with the likes of Walmart entering the grocery business in Canada.

Bill, any thoughts or research reports on L? I don't think I've ever heard you mention it.

Hmmm.... gold below $629 now and sinking like a rock. Bad gold. Bad, bad gold.

stockman,
i am not quite savvy enough to perform this exercise myself, so i will have to wait until bill starts posting the accumulation zones for his 100 list.
but thank you for the additional info. i am learning a lot, especially since i found this blog, so sometime soon i might have the neccessary tools and knowledge to do this research myself.